UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
_____________________________
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date
of Report:
(Date
of
earliest event reported)
July
24, 2006
____________________________
RENT-A-CENTER,
INC.
(Exact
name of registrant as specified in charter)
|
Delaware
|
0-25370
|
45-0491516
|
|
(State
or other jurisdiction of
|
(Commission
File Number)
|
(IRS
Employer Identification No.)
|
|
incorporation
or organization)
|
||
|
5700
Tennyson
Parkway
|
||
|
Plano,
Texas
75024
|
||
|
(Address
of principal executive offices and zip code)
|
||
|
|
||
|
(972)
801-1100
|
||
|
(Registrant's
telephone
|
||
|
number,
including area code)
|
N/A
(Former
name or former address, if changed since last report)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the Registrant under any of the following
provisions (see General Instruction A.2. below):
| ¨ |
Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425).
|
| ¨ |
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12).
|
| ¨ |
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b)).
|
| ¨ |
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
240.13e-4(c)).
|
| Item 2.02 |
Results
of Operations and Financial
Condition.
|
Attached
hereto as Exhibit 99.1 is the Registrant’s press release reflecting earnings
information for the quarter ended June 30, 2006.
The
press
release contains information regarding EBITDA (earnings before interest, taxes,
depreciation and amortization), which is a non-GAAP financial measure as defined
in Item 10(e) of Regulation S-K. The press release also contains a
reconciliation of EBITDA to the Registrant’s reported earnings before income
taxes. Management of the Registrant believes that presentation of EBITDA is
useful to investors, as among other things, this information impacts certain
financial covenants under the Registrant’s senior credit facilities and the
indenture governing its 7 1/2 % Senior Subordinated Notes due 2010. While
management believes this non-GAAP financial measure is useful in evaluating
the
Registrant, this information should be considered as supplemental in nature
and
not as a substitute for or superior to the related financial information
prepared in accordance with GAAP. Further, the non-GAAP financial measure may
differ from similar measures presented by other companies.
Pursuant
to General Instruction B.2. of Form 8-K, all of the information contained in
this Form 8-K and the accompanying exhibit shall be deemed to be "furnished"
and
not "filed" for purposes of Section 18 of the Securities Exchange Act of 1934,
as amended, and, therefore, shall not be incorporated by reference in any filing
under the Securities Act of 1933, as amended.
| Item 9.01 |
Financial
Statements and Exhibits.
|
| (c) |
Exhibits
|
| Exhibit 99.1 |
Press
Release, dated July 24, 2006.
|
2
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
| RENT-A-CENTER, INC. |
| Date: July 24, 2006 | By: | /s/ Robert D. Davis | ||
| Robert D. Davis | ||||
| Senior Vice President - Finance, Chief | ||||
| Financial Officer and Treasurer |
3
EXHIBIT
INDEX
|
Exhibit
No.
|
Description
|
|
99.1
|
Press
release, dated July 24, 2006
|
4
For
Immediate Release:
RENT-A-CENTER,
INC. REPORTS
SECOND
QUARTER 2006 RESULTS
Same
Store Sales Increase 1.1%
Reported
Diluted Earnings per Share of $0.56
_________________
Plano,
Texas, July 24, 2006—
Rent-A-Center, Inc. (the “Company”) (NASDAQ/NGS:RCII), the nation’s largest
rent-to-own operator, today announced revenues and net earnings for the quarter
ended June 30, 2006.
Second
Quarter 2006 Results
The
Company reported total revenues for the quarter ended June 30, 2006 of $583.6
million, a $3.0 million increase from $580.6 million for the same period in
the
prior year. This increase of 0.5% in revenues was primarily driven by a 1.1%
increase in same store sales plus an increase in incremental revenues generated
in new and acquired stores, offset by the revenue lost from stores that were
closed or sold during the previous twelve months.
Reported
net earnings for the quarter ended June 30, 2006 were $39.8 million, or $0.56
per diluted share, representing an increase of 7.7% from the $0.52 per diluted
share, or net earnings of $39.6 million for the same period in the prior year,
when excluding the benefit of the 2005 tax audit reserve credit discussed below.
The increase in reported net earnings per diluted share is primarily
attributable to the increase in same store sales, as well as the reduction
in
the number of the Company’s outstanding shares, offset by increases in normal
operating costs, such as utility and fuel costs, and expenses related to stock
options. When including the 2005 tax audit reserve credit discussed below,
reported net earnings per diluted share for the quarter increased 1.8% from
the
$0.55 per diluted share, or reported net earnings of $41.7 million for the
same
period in the prior year.
Reported
net earnings per diluted share also increased as a result of a $2.0 million
insurance reserve credit resulting from the use of certain company specific
loss
development factors developed by independent actuaries, rather than the general
industry loss development factors previously used by the Company. The $2.0
million insurance reserve credit had an approximate $0.02 per diluted share
benefit in the quarter ended June 30, 2006.
“Our
second quarter same store sales continued a positive trend in 2006,” commented
Mark E. Speese, the Company’s Chairman and Chief Executive Officer. “Our same
store sales increased 1.1% for the quarter, which is primarily related to
changes in our promotional activities as well as an increase in the number
of
units on rent,” Speese continued. “In addition, we believe our customer has
adjusted to the current level of fuel costs. As a result of these factors,
we
are raising our fiscal 2006 guidance to $2.08 to $2.15 diluted earnings per
share from $2.00 to $2.10,” Speese stated.
Six
Months Ended June 30, 2006 Results
Total
reported revenues for the six months ended June 30, 2006 increased to $1.191
billion, a 0.8% increase from $1.182 billion for the same period in the prior
year. Same store revenues for the six month period ending June 30, 2006
increased 1.4%.
Reported
net earnings for the six months ended June 30, 2006 were $80.2 million, or
$1.14
per diluted share, representing an increase of 5.6% from the $1.08 per diluted
share, or net earnings of $82.3 million for the same period in the prior year,
when excluding the benefit of the 2005 tax audit reserve and litigation
reversion credits discussed below. When including these benefits in 2005,
reported net earnings per diluted share for the six months ended June 30, 2006
decreased 3.4% from the $1.18 per diluted share, or reported net earnings of
$89.4 million for the same period in the prior year.
Through
the six month period ended June 30, 2006, the Company generated cash flow from
operations of approximately $35.0 million, while ending the quarter with $41.2
million of cash on hand.
During
the six month period ended June 30, 2006, the Company repurchased 202,800 shares
of its common stock for $4.7 million in cash under its common stock repurchase
program and has utilized a total of $360.8 million of the $400 million
authorized by its Board of Directors since the inception of the
plan.
Operations
Highlights
During
the second quarter of 2006, the Company opened 9 new rent-to-own store
locations, acquired 16 stores as well as accounts from 15 additional locations,
consolidated 19 stores into existing locations, and sold 12 stores, for a net
reduction of six stores and an ending balance of 2,749 stores. During the second
quarter of 2006, the Company added financial services to 21 existing rent-to-own
store locations and ended the quarter with a total of 77 stores providing these
services.
Through
the six month period ending June 30, 2006, the Company opened 19 new rent-to-own
store locations, acquired 18 stores as well as accounts from 20 additional
locations, consolidated 33 stores into existing locations, and sold 15 stores,
for a net reduction of 11 stores. Through the six month period ending June
30,
2006, the Company added financial services to 38 existing rent-to-own store
locations and consolidated one store with financial services into an existing
location, for a net addition of 37 stores providing these services.
Since
June 30, 2006, the Company has opened 1 new rent-to-own store location and
acquired 1 store, as well as accounts from 4 additional locations. The Company
has added financial services to 4 existing rent-to-own store locations since
June 30, 2006.
2005
Reserve Adjustment Credits
2005
Tax Audit Reserve Credit. During
the second quarter of 2005, the Company recorded a $2.0 million tax audit
reserve credit associated with the examination and favorable resolution of
the
Company’s 1998 and 1999 federal tax returns. The tax audit reserve credit
increased diluted earnings per share in the second quarter of 2005 by $0.03,
from $0.52 per diluted earnings per share to the reported diluted earnings
per
share of $0.55.
2005
Litigation Reversion Credit. In
addition, the Company recorded an $8.0 million pre-tax credit in the first
quarter of 2005 associated with the settlement of the Griego/Carrillo
litigation. This pre-tax litigation reversion credit increased diluted earnings
per share for the six month period ended June 30, 2005 by $0.07. The litigation
reversion credit, combined with the tax audit reserve credit in the second
quarter of 2005, increased diluted earnings per share for the six month period
ended June 30, 2005 by $0.10 to the reported diluted earnings per share of
$1.18.
-
- -
Rent-A-Center
will host a conference call to discuss the first quarter results on Tuesday
morning, July 25, 2006, at 10:45 a.m. EST. For a live webcast of the call,
visit
http://investor.rentacenter.com.
Certain
financial and other statistical information that will be discussed during the
conference call will also be provided on the same website.
Rent-A-Center,
Inc., headquartered in Plano, Texas, currently operates 2,751 company-owned
stores nationwide and in Canada and Puerto Rico. The stores generally offer
high-quality, durable goods such as major consumer electronics, appliances,
computers and furniture and accessories under flexible rental purchase
agreements that generally allow the customer to obtain ownership of the
merchandise at the conclusion of an agreed upon rental period. ColorTyme, Inc.,
a wholly owned subsidiary of the Company, is a national franchiser of 292
rent-to-own stores, 284 of which operate under the trade name of "ColorTyme,"
and the remaining 8 of which operate under the "Rent-A-Center"
name.
The
following statements are based on current expectations. These statements are
forward-looking, and actual results may differ materially. These statements
do
not include the potential impact of any repurchases of common stock the Company
may make, the estimated $2.2 million non-cash charge in the third quarter to
write off the remaining unamortized balance of financing costs from our previous
credit agreement, or the potential impact of acquisitions or dispositions that
may be completed after July 24, 2006.
THIRD
QUARTER 2006 GUIDANCE:
Revenues
| · |
The
Company expects total revenues to be in the range of $584 million to
$592
million.
|
| · |
Store
rental and fee revenues are expected to be between $528 million and
$534
million.
|
| · |
Total
store revenues are expected to be in the range of $575 million to $583
million.
|
| · |
Same
store sales are expected to be in the 2.5% to 3.5%
range.
|
| · |
The
Company expects to open 5-15 new rent-to-own store
locations.
|
| · |
The
Company expects to add financial services to 20-30 rent-to-own store
locations.
|
Expenses
| · |
The
Company expects cost of rental and fees to be between 21.7% and 22.1%
of
store rental and fee revenue and cost of merchandise sold to be between
73% and 78% of store merchandise sales.
|
| · |
Store
salaries and other expenses are expected to be in the range of 58.5%
to
60.0% of total store revenue.
|
| · |
General
and administrative expenses are expected to be between 3.6% and 3.8%
of
total revenue.
|
| · |
Net
interest expense is expected to be approximately $12.0 million,
depreciation of property assets to be approximately $13.5 million and
amortization of intangibles is expected to be approximately $1.1
million.
|
| · |
The
effective tax rate is expected to be approximately 37.0% of pre-tax
income.
|
| · |
Diluted
earnings per share are estimated to be in the range of $0.46 to
$0.50.
|
| · |
Diluted
shares outstanding are estimated to be between 70.5 million and 71.5
million.
|
FISCAL
2006 GUIDANCE:
Revenues
| · |
The
Company expects total revenues to be in the range of $2.360 billion
and
$2.380 billion.
|
| · |
Store
rental and fee revenues are expected to be between $2.100 billion and
$2.118 billion.
|
| · |
Total
store revenues are expected to be in the range of $2.318 billion and
$2.338 billion.
|
| · |
Same
store sales are expected to be in the 1.0% to 2.0%
range.
|
| · |
The
Company expects to open 60-70 new store
locations.
|
| · |
The
Company expects to add financial services to 100-120 rent-to-own store
locations.
|
Expenses
| · |
The
Company expects cost of rental and fees to be between 21.6% and 22.0%
of
store rental and fee revenue and cost of merchandise sold to be between
70% and 75% of store merchandise sales.
|
| · |
Store
salaries and other expenses are expected to be in the range of 57.5%
to
59.0% of total store revenue.
|
| · |
General
and administrative expenses are expected to be between 3.6% and 3.8%
of
total revenue.
|
| · |
Net
interest expense is expected to be between $43.0 million and $48.0
million, depreciation of property assets is expected to be between
$52.0
million and $57.0 million and amortization of intangibles is expected
to
be approximately $4.0 million.
|
| · |
The
effective tax rate is expected to be approximately 37.0% of pre-tax
income.
|
| · |
Diluted
earnings per share are estimated to be in the range of $2.08 to
$2.15.
|
| · |
Diluted
shares outstanding are estimated to be between 70.0 million and 71.5
million.
|
This
press release and the guidance above contain forward-looking statements that
involve risks and uncertainties. Such forward-looking statements generally
can
be identified by the use of forward-looking terminology such as “may,” “will,”
“expect,” “intend,” “could,” “estimate,” “should,” “anticipate,” or “believe,”
or the negative thereof or variations thereon or similar terminology. Although
the Company believes that the expectations reflected in such forward-looking
statements will prove to be correct, the Company can give no assurance that
such
expectations will prove to have been correct. The actual future performance
of
the Company could differ materially from such statements. Factors that could
cause or contribute to such differences include, but are not limited to:
uncertainties regarding the Company’s ability to open new rent-to-own stores;
the Company’s ability to acquire additional rent-to-own stores on favorable
terms; the Company’s ability to enhance the performance of these acquired
stores; the Company’s ability to control store level costs; the Company’s
ability to identify and successfully market products and services that appeal
to
the Company’s customer demographic; the Company’s ability to identify and
successfully enter into new lines of business offering products and services
that appeal to the Company’s customer demographic, including the Company’s
financial services products; the results of the Company’s litigation; the
passage of legislation adversely affecting the rent-to-own or financial services
industries; interest rates; the Company’s ability to enter into new and collect
on the Company’s rental purchase agreements; the Company’s ability to enter into
new and collect on the Company’s short term loans; economic pressures affecting
the disposable income available to the Company’s targeted consumers, such as
high fuel and utility costs; changes in estimates with respect to self insurance
liabilities and income tax reserves; changes in the Company’s effective tax
rate; the Company’s ability to maintain an effective system of internal
controls; changes in the number of share-based compensation grants, methods
used
to value future share-based payments and changes in estimated forfeiture rates
with respect to share-based compensation; changes in the Company’s stock price
and the number of shares of
common stock that we may or may not repurchase; and other risks detailed from
time to time in the Company’s SEC reports, including but not limited to, the
Company’s annual report on Form 10-K for the year ended December 31, 2005 and
its quarterly report on Form 10-Q for the quarter ended March 31, 2006. You
are
cautioned not to place undue reliance on these forward-looking statements,
which
speak only as of the date of this press release. Except as required by law,
the
Company is not obligated to publicly release any revisions to these
forward-looking statements to reflect the events or circumstances after the
date
of this press release or to reflect the occurrence of unanticipated
events.
Contact
for Rent-A-Center, Inc.:
|
David
E. Carpenter
Vice
President of Investor Relations
(972)
801-1214
dcarpenter@racenter.com
|
Rent-A-Center,
Inc. and Subsidiaries
STATEMENT
OF EARNINGS HIGHLIGHTS
(In
Thousands of Dollars, except per share data)
|
Three
Months Ended June 30,
|
||||||||||
|
2006
|
2005
|
2005
|
||||||||
|
Before
Tax Audit Reserve Credit
|
After
Tax Audit Reserve Credit
|
|||||||||
|
Total
Revenue
|
$
|
583,623
|
$
|
580,578
|
$
|
580,578
|
||||
|
Operating
Profit
|
75,193
|
72,988
|
72,988
|
|||||||
|
Net
Earnings
|
39,843
|
39,620
|
41,742(1
|
)
|
||||||
|
Diluted
Earnings per Common Share
|
$
|
0.56
|
$
|
0.52
|
$
|
0.55(1
|
)
|
|||
|
EBITDA
|
$
|
89,670
|
$
|
88,414
|
$
|
88,414
|
||||
|
Reconciliation
to EBITDA:
|
||||||||||
|
Reported
earnings before income taxes
|
63,291
|
63,553
|
63,553
|
|||||||
|
Add
back:
|
||||||||||
|
Interest
expense, net
|
11,902
|
9,435
|
9,435
|
|||||||
|
Depreciation
of property assets
|
13,527
|
13,271
|
13,271
|
|||||||
|
Amortization
of intangibles
|
950
|
2,155
|
2,155
|
|||||||
|
EBITDA
|
$
|
89,670
|
$
|
88,414
|
$
|
88,414
|
||||
|
Six
Months Ended June 30,
|
||||||||||
|
2006
|
2005
|
2005
|
||||||||
|
Before
Tax
Audit
Reserve and Litigation Credits
|
After
Tax
Audit
Reserve and Litigation Credits
|
|||||||||
|
Total
Revenue
|
$
|
1,190,598
|
$
|
1,182,387
|
$
|
1,182,387
|
||||
|
Operating
Profit
|
150,677
|
150,980
|
158,980
|
|||||||
|
Net
Earnings
|
80,171
|
82,305
|
89,411
(2
|
)
|
||||||
|
Diluted
Earnings per Common Share
|
$
|
1.14
|
$
|
1.08
|
$
|
1.18
(2
|
)
|
|||
|
EBITDA
|
$
|
179,507
|
$
|
181,966
|
$
|
181,966
|
||||
|
Reconciliation
to EBITDA:
|
||||||||||
|
Reported
earnings before income taxes
|
127,212
|
132,079
|
140,079
|
|||||||
|
Add
back:
|
||||||||||
|
Litigation
Reversion
|
--
|
--
|
(8,000
|
)
|
||||||
|
Interest
expense, net
|
23,465
|
18,901
|
18,901
|
|||||||
|
Depreciation
of property assets
|
26,994
|
26,534
|
26,534
|
|||||||
|
Amortization
of intangibles
|
1,836
|
4,452
|
4,452
|
|||||||
|
EBITDA
|
$
|
179,507
|
$
|
181,966
|
$
|
181,966
|
||||
| (1) |
Including
the effects of a $2.0 million tax audit reserve credit associated with
the
examination and favorable resolution of the Company’s 1998 and 1999
federal tax returns. This credit increased diluted earnings per share
in
the second quarter by $0.03, from $0.52 per diluted earnings per share
to
the reported diluted earnings per share of
$0.55.
|
| (2) |
Including
the effects of an $8.0 million pre-tax credit in the first quarter
associated with the settlement of the Griego/Carrillo litigation
reversion. This pre-tax credit increased diluted earnings per share
for
the six month period ended June 30, 2005 by $0.07. The litigation
reversion credit, combined with the $2.0 million tax audit reserve
credit
in the second quarter of 2005, increased diluted earnings per share
for
the six month period ended June 30, 2005 by $0.10 to the reported diluted
earnings per share of $1.18.
|
|
Selected
Balance Sheet Data: (in Thousands of Dollars)
|
June
30, 2006
|
June
30, 2005
|
|||||
|
Cash
and cash equivalents
|
$
|
41,174
|
$
|
25,119
|
|||
|
Prepaid
expenses and other assets
|
34,133
|
52,566
|
|||||
|
Rental
merchandise, net
|
|||||||
|
On
rent
|
633,749
|
574,080
|
|||||
|
Held
for rent
|
178,667
|
197,639
|
|||||
|
Total
Assets
|
2,006,846
|
1,930,793
|
|||||
|
Senior
debt
|
417,155
|
364,500
|
|||||
|
Subordinated
notes payable
|
300,000
|
300,000
|
|||||
|
Total
Liabilities
|
1,091,096
|
1,041,531
|
|||||
|
Stockholders’
Equity
|
915,750
|
889,262
|
|||||
Rent-A-Center,
Inc. and Subsidiaries
CONSOLIDATED
STATEMENTS OF EARNINGS
|
(In
Thousands of Dollars, except per share data)
|
Three
Months Ended June 30,
|
||||||
|
2006
|
2005
|
||||||
|
Unaudited
|
|||||||
|
Store
Revenue
|
|||||||
|
Rentals
and Fees
|
$
|
527,076
|
$
|
526,639
|
|||
|
Merchandise
Sales
|
38,428
|
37,498
|
|||||
|
Installment
Sales
|
5,728
|
6,618
|
|||||
|
Other
|
3,254
|
997
|
|||||
|
574,486
|
571,752
|
||||||
|
Franchise
Revenue
|
|||||||
|
Franchise
Merchandise Sales
|
7,892
|
7,443
|
|||||
|
Royalty
Income and Fees
|
1,245
|
1,383
|
|||||
|
Total
Revenue
|
583,623
|
580,578
|
|||||
|
Operating
Expenses
|
|||||||
|
Direct
Store Expenses
|
|||||||
|
Cost
of Rental and Fees
|
114,733
|
114,068
|
|||||
|
Cost
of Merchandise Sold
|
28,403
|
28,225
|
|||||
|
Cost
of Installment Sales
|
2,398
|
2,750
|
|||||
|
Salaries
and Other Expenses
|
333,113
|
332,939
|
|||||
|
Franchise
Operation Expenses
|
|||||||
|
Cost
of Franchise Merchandise Sales
|
7,580
|
7,163
|
|||||
|
486,227
|
485,145
|
||||||
|
General
and Administrative Expenses
|
21,253
|
20,290
|
|||||
|
Amortization
of Intangibles
|
950
|
2,155
|
|||||
|
Total
Operating Expenses
|
508,430
|
507,590
|
|||||
|
Operating
Profit
|
75,193
|
72,988
|
|||||
|
Interest
Income
|
(1,399
|
)
|
(1,351
|
)
|
|||
|
Interest
Expense
|
13,301
|
10,786
|
|||||
|
Earnings
before Income Taxes
|
63,291
|
63,553
|
|||||
|
Income
Tax Expense
|
23,448
|
21,811
|
|||||
|
NET
EARNINGS
|
39,843
|
41,742
|
|||||
|
BASIC
WEIGHTED AVERAGE SHARES
|
69,545
|
74,747
|
|||||
|
BASIC
EARNINGS PER COMMON SHARE
|
$
|
0.57
|
$
|
0.56
|
|||
|
DILUTED
WEIGHTED AVERAGE SHARES
|
70,640
|
76,001
|
|||||
|
DILUTED
EARNINGS PER COMMON SHARE
|
$
|
0.56
|
$
|
0.55
|
|||
Rent-A-Center,
Inc. and Subsidiaries
CONSOLIDATED
STATEMENTS OF EARNINGS
|
(In
Thousands of Dollars, except per share data)
|
Six
Months Ended June 30,
|
||||||
|
2006
|
2005
|
||||||
|
Unaudited
|
|||||||
|
Store
Revenue
|
|||||||
|
Rentals
and Fees
|
$
|
1,047,459
|
$
|
1,045,261
|
|||
|
Merchandise
Sales
|
102,591
|
100,268
|
|||||
|
Installment
Sales
|
11,579
|
13,202
|
|||||
|
Other
|
6,540
|
2,075
|
|||||
|
1,168,169
|
1,160,806
|
||||||
|
Franchise
Revenue
|
|||||||
|
Franchise
Merchandise Sales
|
19,973
|
18,787
|
|||||
|
Royalty
Income and Fees
|
2,456
|
2,794
|
|||||
|
Total
Revenue
|
1,190,598
|
1,182,387
|
|||||
|
Operating
Expenses
|
|||||||
|
Direct
Store Expenses
|
|||||||
|
Cost
of rental and fees
|
227,500
|
226,536
|
|||||
|
Cost
of Merchandise Sold
|
72,533
|
70,292
|
|||||
|
Cost
of Installment Sales
|
4,821
|
5,613
|
|||||
|
Salaries
and Other Expenses
|
671,884
|
666,980
|
|||||
|
Franchise
Operation Expenses
|
|||||||
|
Cost
of Franchise Merchandise Sales
|
19,136
|
18,029
|
|||||
|
995,874
|
987,450
|
||||||
|
General
and Administrative Expenses
|
42,211
|
39,505
|
|||||
|
Amortization
of Intangibles
|
1,836
|
4,452
|
|||||
|
Litigation
Reversion
|
--
|
(8,000
|
)
|
||||
|
Total
Operating Expenses
|
1,039,921
|
1,023,407
|
|||||
|
Operating
Profit
|
150,677
|
158,980
|
|||||
|
Interest
Income
|
(2,859
|
)
|
(2,753
|
)
|
|||
|
Interest
Expense
|
26,324
|
21,654
|
|||||
|
Earnings
before Income Taxes
|
127,212
|
140,079
|
|||||
|
Income
Tax Expense
|
47,041
|
50,668
|
|||||
|
NET
EARNINGS
|
80,171
|
89,411
|
|||||
|
BASIC
WEIGHTED AVERAGE SHARES
|
69,401
|
74,653
|
|||||
|
BASIC
EARNINGS PER COMMON SHARE
|
$
|
1.16
|
$
|
1.20
|
|||
|
DILUTED
WEIGHTED AVERAGE SHARES
|
70,445
|
76,036
|
|||||
|
DILUTED
EARNINGS PER COMMON SHARE
|
$
|
1.14
|
$
|
1.18
|
|||